Automakers Report Modest Sales Growth Amid Economic Uncertainty

Most automakers, excluding Tesla, have recently reported a slight increase in sales during the second quarter of the year, spanning from April to June. Factors such as elevated interest rates, continued high vehicle prices, and uncertainties surrounding the economy and the upcoming presidential election have dampened consumer sentiment.

Furthermore, sales in late June faced additional challenges due to disruptions at car dealerships following a cyberattack on a software and data services provider for these establishments.

Market research firm Cox Automotive estimated that approximately 4.1 million new cars and trucks were sold in the second quarter, representing a marginal uptick from the same period in the previous year. For the first half of 2024, a total of 7.9 million new vehicles were sold, signifying a 3 percent increase compared to the corresponding period in 2023.

Despite the moderate growth observed, the automotive industry anticipates a continuation of sluggish sales in the coming months as consumers delay significant purchases until after the presidential election. Cox’s chief economist, Jonathan Smoke, highlighted the prevailing uncertainty in the market, indicating that while sales may not maintain the pace of the first half of the year, a notable decline is not expected either.

Cox Automotive has projected that a total of 15.9 million new cars and trucks will be sold in 2024. This forecast represents an improvement from the 15.5 million vehicles sold in the previous year but remains below the pre-pandemic annual average of 17 million units.

General Motors announced that it achieved sales of nearly 700,000 cars and light trucks in the United States during the second quarter, registering a modest increase of less than 1 percent compared to the corresponding period in the prior year. The company noted that this performance marked its highest quarterly total since the fourth quarter of 2020.